KPMG Corporate Finance LLC Business Services M&A Quarterly...LTM Announced / Closed Target Target Business Description Acquirer TV EV EV / Revenue EV / EBITDA Closed 1-Oct Progressive
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UKLondonManuel SammutJan CrosbyBirminghamKush PurewalBristolTim SpoonerLeedsGiles TaylorManchester Alex Hartley
ArgentinaBuenos AiresMarcelo R Ceballos
CanadaToronto Neil BlairMatt TedfordVancouverMarco Tomassetti
BelgiumBrusselsPeter Lauwers
NetherlandsAmsterdamWouter Van der HeijdenKhalid BakkaliCarlo de Haas
ItalyMilanMax FianiRomeMaria Civita Cafolla
SpainMadridEloy SerranoBorja Gomez Orue
FranceParisMark WyattJean-Christophe Paoli
GermanyFrankfurtSteffen WagnerTeresa Schawe
SwitzerlandGenevaPatrik Kerler
JapanTokyoHikaru Okada
IndiaIndiaKV KuchimanchiRamanand K VAnand VermaniDivya SethSachin Bansal
ChinaShanghaiAndy QiuRainbow Wang
AustraliaMelbournePeter Turner
DenmarkCopenhagenKim Harpoeth Jespersen
RussiaMoscowRobert VartevanianJohn Kallaway
HungaryBudapestJános Róbert Nagy
Sri LankaColomboShiluka Goonewardene
TaiwanTaipeiCaroll C.Y. Yen
SingaporeSingaporeVishal Sharma
UAEDubaiSimi Nehra
IrelandBelfastPaul Hollaway
South KoreaSeoulSung-Won Park
CroatiaZagrebDaniel Radic
1 Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms. 2Thomson Reuters SDC; global full market transactions completed by volume
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M&A League Table – FY 2017 KPMG Awards & Recognition
KPMG Corporate Finance is a leadingMiddle Market investment banking platformto the business services market, servingdomestic and international clients. OurBusiness Services team offers a full rangeof investment banking and advisoryservices. Our experience covers a broadrange of end markets including:
— Consulting & Professional Services
— Facilities Management & Services
— Engineering & Construction
— Staffing & HRO
— Outsourcing & BPO
— Education & Training
— Marketing Services
— Information Services
— Consumer Services
— Industrial Services
has been acquired by
Deal Spotlight
KPMG Corporate Finance served as the exclusive advisor to Random42, a portfoliocompany of Vespa Capital, on the sale of the business to Graphite Capital. Thetransaction represents one of the most high-profile acquisitions within the emergingmedical commutations during 2017. Radom42 is a global market leader in the medicalanimation and digital media services industry the to healthcare and pharmaceuticalsectors. Its products and services are used by clients to explain the underlying scienceduring drug discovery and launch process and for corporate communication andeducation purposes.
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Consulting & Professional Services— Specialty Consulting— Customer Engagement / Call Center
Management— IT Consulting— HR Staffing & Professional Services
Engineering & Construction— Diversified Engineering & Construction Providers— Specialty Engineering & Construction Firms— Construction Contractors
Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notable Recent U.S. Sector Transactions
Consulting & Professional Services
($MM)LTM
Announced / Closed Target Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed1-Oct
Progressive Employer Management Company
A PEO, provides human resource services to small and medium sized business in the U.S.
CoAdvantage / Morgan Stanley NA NA NA NA
Closed2-Oct
Associated Data Services
Provides human resource and payroll management services Asure Software NA NA NA NA
Closed2-Oct StaffMasters
Provides strategic staffing solutions, human resource consulting, and recruitment process outsourcing services
Hire Dynamics NA NA NA NA
Closed25-Oct Total HR Management A PEO, provides human resource services to
small and medium sized business in the U.S.CoAdvantage / Morgan Stanley NA NA NA NA
Closed14-Nov IntraLinks Software-as-a-service solutions provider for
secure enterprise content collaboration Siris Capital Group $1,082 $1,021 3.45x NM
Closed20-Nov Bridgepoint Consulting Offers management consulting services Addison Group NA NA NA NA
Closed4-Dec Accretive Solutions. Professional services firm offering consulting,
project resources, and outsourcing solutions Resources Connection $38 $38 NA NA
Closed5-Dec Staff One A PEO, provides human resource services to
small and medium sized business in the U.S.Oasis Outsourcing / Stone Point Capital NA NA NA NA
Closed20-Dec
Survey Sampling International
Offers market research, data collection, and technology solutions for survey research Research Now SSI NA NA NA NA
Q4’17$11.2bn U.S. deal value increased from
$4.5bn in Q3’17 to $10.0bn in Q4’17, while volume increased 6.3%
47.7%U.S. share of global M&A volume Q4’17
U.S. M&A volume increased to 47.7% of global M&A activity during Q4’17, up from 40.6% in Q3’17
During Q4’17, aggregateGlobal sector deal value increased 7.7%, while deal volume was relatively flat compared to Q3’17
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Total Mean 67.2% 12.4% 6.6% 1.74x 12.8xTotal Median 72.3% 12.2% 4.6% 1.42x 11.8x
($MM)
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Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Consulting & Professional Services is defined by an internally originated list of subsectors viewed as best representing the industry.
U.S. E&C deal value witnessed a significant increase from $127.4m in Q3’17 to $4.3bn in Q4’17; along with a 10.2% increase in the total number of U.S.transactions, compared to Q3’17.
The U.S. accounted for 31.2% of global E&C M&A activity in Q4’17, an increase from 24.9% in Q3’17
Global aggregate E&C deal value increased to $6.9bn in Q4’17, up from $3.7bn in Q3’17. However, sector deal volume witnessed a 12.2% decline, compared to Q3’17.
31.2%
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4’17
$127
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Q3’17$3.7bn
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Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
LTMAnnounced / Closed Target Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed3-Oct Glumac
Provider of cost-effective sustainable design, energy analysis, and related engineering solution
Tetra Tech NA NA NA NA
Closed10-Oct
Williams Electric Company
Electrical contractor, catering to government and commercial customers Parsons Corporation NA NA NA NA
Announced17-Oct
Praxis Engineering Technologies
Offers technology solutions, focusing on application software and system engineering technologies
CSRA $235 $235 NA NA
Closed30-Oct Heery International
Architecture, interior design, engineering, construction management, and program management services provider
CBRE Group, Inc. $55 $55 NA NA
Closed21-Nov
New England Utility Constructors
Provider of general contracting and construction services
Centuri Construction Group NA NA NA NA
Closed27-Nov
MSP Engineering Group Offers structural engineering services BIG RED DOG NA NA NA NA
Closed30-Nov
Moreland Altobelli; Pavetex Engineering; and Engineering Testing Services
Combined companies offer engineering,infrastructure, construction, and program management services
Bernhard Capital Partners NA NA NA NA
Closed6-Dec Woolpert Operates as a design, geospatial, and
infrastructure management company Long Point Capital NA NA NA NA
Closed26-Dec
U.S. Power & Industrial Engineering Services Division, of AltranTechnologies S.A.
Engineering, design, and construction management services provider CriticalPoint Capital NA NA NA NA
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.Source: S&P Capital IQ. Engineering & Construction is defined by an internally originated list of subsectors viewed as best representing the industry.
(MRO), and industrial cleaning solutionsPSC Industrial Holdings Corp. NA NA NA NA
Announced16-Oct AmeriPride Services Uniform rental and linen supply services
provider Aramark $1,000 $1,000 NA 12.0x
Closed17-Oct
VLS Recovery Services, LLC
Provides waste management and railcar cleaning services Aurora Capital Partners NA NA NA NA
Closed 11-Dec Avendra Supply chain management company with a
focus on the hospitality industry Aramark $1,350 $1,350 NA 13.0x
Announced11-Dec SMG Provides public facility management services Onex Corporation NA NA NA NA
Closed20-Dec
Liquid Environmental Solutions Corporation
Offers liquid and non-hazardous waste collection, recycling, reclamation, and disposal services
Audax Group NA NA NA NA
Closed20-Dec
Potter Electric Signal Company
Develops, manufactures, and installs sprinkler monitoring, security, fire, and industrial control products
Gryphon Investors NA NA NA NA
Q3’17$2.7bn
Q4’17$1.4bn
Q4’17 U.S. M&A deal value decreased to $222.2m, compared to $ 282.5m in Q3’17. Deal volume in the U.S.remained relatively flat during Q4’17
38.3%U.S. share of global M&A volume Q4’17
U.S. deal flow accounted for 38.3% of global M&A activity in Q4’17, up from 36.9% in Q3’17.
In Q4’17 global deal value fell by 48.7% to $1.4bn compared to Q3’17. Global deal volume fell by 7.7% from 65 reported deals in Q3’17 to 60 in Q4’17.
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Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Facilities Management & Maintenance is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Announced / Closed Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed2-Oct
Chadwick Martin Bailey(CMB)
Provides market research and consulting services ITA Group NA NA NA NA
Closed3-Oct AlphaGraphics
Offers a range of print, visual communications, and marketing products and solutions
MBE Worldwide $60 $60 NA NA
Closed5-Oct
Penguin Random House
Publishes trade books, and books for adult and children Bertelsmann SE & Co. $1,034 $4,466 1.32x 8.4x
Announced18-Oct Rodale
Operates as a publishing company that focuses on health and wellness lifestyle brands
Hearst Magazines Corporation NA NA NA NA
Closed13-Nov Plowshare Group Advertising agency for nonprofit organizations
and government agencies Publicis NA NA NA NA
Closed5-Dec
Alliance Life Sciences Consulting Group
Provides management and technology consulting services The Access Group NA NA NA NA
Closed5-Dec Health Strategies
Provides market intelligence and consulting services to pharmaceutical and biotechnology sectors
The Access Group NA NA NA NA
Announced6-Dec Swirl
Operates as an integrated marketing agency, offering advertising, strategy, and media development and analytics services
Dentsu NA NA NA NA
Announced14-Dec David & Goliath LLC Provides marketing strategies, advertising
and communication services Innocean Worldwide NA NA NA NA
U.S. media & marketing services deal value for the quarter was relatively unchanged at $18.7bn, while deal volume increased by 3.9%.
Global media & marketing services deal value declined by 27.7% to $26.3bn in Q4’17, compared to Q3’17, however deal volume was up 6.6% during the quarter.
Total global deal value$26.3billion
U.S. deal value
$18.7billion
U.S. share of global M&A volume
The U.S. accounted 39.8% of global M&A volume in Q4’17, a slight decline from 40.9% in Q3’17.
Q3’1740.9%
Q4’1739.8%
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Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Total Mean 65.2% 23.7% 6.1% 2.54x 12.4xTotal Median 74.1% 22.8% 4.3% 2.56x 10.7x
($MM)
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Source: S&P Capital IQ. Media & Marketing Services is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
The U.S. accounted for 16.8% of global T&L M&A activity in Q4’17, compared to 15.2% in Q3’17
Total U.S. T&L deal value witnessed a significant decline in Q4’17 to $1.3bn, from $5.3bn in Q3’17. However, the U.S. T&L M&A activity increased slightly from 24 reported deals in Q3’17 to 27 in Q4’17.
Global T&L deal value for Q4’17 increased by 41.6% to $12.6bn compared to Q3’17, while the deal volume remained relatively flat being up 1.9% for the quarter
Q4’17
Q3’17 15.2%
Q4’1716.8%
Notable Recent U.S. Sector Transactions
Transportation & Logistics M&A Update
($MM)LTM
Announced / Closed Target Target Business Description Acquirer TV EV
EV / Revenue
EV / EBITDA
Closed3-Oct IntegraCore Supply chain management, fulfillment, and
logistics services providerVisible Supply Chain Management NA NA NA NA
Closed9-Oct
ITS Technologies & Logistics
Offers intermodal rail terminal services, auto loading and unloading, and container depot services
AMP Capital Investors NA $500 NA 10.5x
Closed9-Oct Transplace Provides transportation management and
logistics technology services TPG Capital NA NA NA NA
Closed31-Oct
Odyssey Logistics & Technology Corporation
Offers third party logistics, brokerage, and intermodal marketing services The Jordan Company $643 $643 3.1x NA
Closed1-Nov Savage Logistics
Provides third-party logistics services for commodity, agricultural, and recycling industries
Becker Logistics NA NA NA NA
Closed8-Nov 4SameDay Operates as a transportation and
warehousing services provider 1st Choice Delivery NA NA NA NA
Closed29-Nov The Clark Group Offers third party logistics services for
publishing, printing, distribution industries LSC Communications NA NA NA NA
Closed7-Dec APEX Logistics Group
Provides temperature-controlled transportation and warehouse management services
GlobalTranz Enterprises NA NA NA NA
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Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry. Deal values represents aggregate deal value for disclosed transactions only.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
United Parcel Service, Inc. 102,675.3 119.15 73.9% 117,173.3 63,974.0 7,846.0 12.3% 5.0% 1.83x 14.9xFedEx Corporation 66,849.2 249.54 92.3% 79,522.2 62,335.0 8,485.0 13.6% 12.9% 1.28x 9.4xDeutsche Post AG 57,711.1 47.73 85.1% 62,235.6 70,612.2 5,492.3 7.8% 16.7% 0.88x 11.3xKuehne + Nagel International AG 21,160.3 177.00 81.9% 20,589.8 18,372.5 1,131.1 6.2% 12.9% 1.12x 18.2xDSV A/S 14,508.2 78.80 91.6% 15,528.6 11,673.5 842.3 7.2% 21.4% 1.33x 18.4xJ.B. Hunt Transport Services, Inc. 12,619.3 114.98 94.4% 13,697.9 6,228.8 1,048.3 16.8% 3.7% 2.20x 13.1xC.H. Robinson Worldwide, Inc. 12,446.3 89.09 97.0% 13,618.0 14,324.6 837.7 5.8% 9.0% 0.95x 16.3xExpeditors International of Washington, Inc. 11,495.6 64.69 90.9% 10,465.2 6,661.6 721.6 10.8% 9.2% 1.57x 14.5xRyder System, Inc. 4,456.6 84.17 93.1% 9,740.6 7,119.1 1,773.5 24.9% 4.9% 1.37x 5.5xLandstar System, Inc. 4,368.6 104.10 87.3% 4,228.1 3,440.9 276.2 8.0% 10.2% 1.23x 15.3xPanalpina World Transport (Holding) Ltd. 3,680.1 155.04 95.8% 3,387.5 5,570.7 112.7 2.0% 8.9% 0.61x NMAgility Public Warehousing Company K.S.C.P. 3,342.5 2.66 61.7% 3,832.3 4,422.0 384.4 8.7% 9.7% 0.87x 10.0xTFI International Inc. 2,357.5 26.20 68.4% 3,558.8 3,407.7 405.4 11.9% 23.6% 1.04x 8.8xWorld Fuel Services Corporation 1,902.8 28.14 10.8% 2,525.3 32,615.6 261.1 0.8% 20.7% NM 9.7xForward Air Corporation 1,710.1 57.44 82.0% 1,738.9 1,059.5 147.1 13.9% 7.8% 1.64x 11.8xHub Group, Inc. 1,634.0 47.90 76.2% 1,913.7 3,850.9 143.4 3.7% 7.8% 0.50x 13.3xFortress Transportation and Infrastructure Investors LLC 1,510.1 19.93 97.8% 2,086.6 198.6 89.9 45.3% 33.5% NM 23.2xAtlas Air Worldwide Holdings, Inc. 1,482.9 58.65 56.8% 3,412.3 2,058.2 427.1 20.7% 11.9% 1.66x 8.0xAir Transport Services Group, Inc. 1,368.1 23.14 69.4% 1,868.9 966.9 231.2 23.9% 25.8% 1.93x 8.1xEcho Global Logistics, Inc. 781.4 28.00 93.8% 969.2 1,802.2 31.8 1.8% 5.0% 0.54x NMRoadrunner Transportation Systems, Inc. 295.6 7.71 28.5% 694.9 1,972.2 100.8 5.1% 0.0% NM 6.9xMean 77.6% 12.0% 12.4% 1.25x 12.5xMedian 85.1% 8.7% 9.7% 1.25x 11.8x
Total Mean 72.2% 18.7% 20.3% 1.73x 11.1xTotal Median 84.2% 14.0% 7.7% 1.41x 11.3x
($MM)
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Source: S&P Capital IQ. Transportation & Logistics is defined by an internally originated list of subsectors viewed as best representing the industry.
Notes:1. Market Capitalization amounts are based on closing share prices as of December 31, 2017.2. Share prices and market capitalizations may be based on foreign exchange listed stocks and have been converted into USD.3. Enterprise Value (EV) is defined as Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents.4. EBITDA is defined as Earnings before Interest, Taxes, Depreciation, and Amortization.
Important NoticeThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. The information contained in this communication does not constitute a recommendation, offer, or solicitation to buy, sell or hold any security of any issuer. Past performance does not guarantee future results.